US stocks closed at record levels on Friday, capping a strong first full trading week of 2026 as investors digested a softer-than-expected December jobs report and monitored key policy developments.
Global equity markets closed higher on Friday, led by strong gains on Wall Street, as investor sentiment remained upbeat. The S&P 500 rose 0.65% to 6,966.28, while the Dow Jones Industrial Average advanced 0.48% to 49,504.07, with both indices ending at record highs. The Nasdaq Composite outperformed, gaining 0.81% to close at 23,671.35.
Broader market participation was evident, with the NYSE Composite up 0.47% and the Russell 2000 climbing 0.78%, indicating strength across large- and small-cap stocks. The US Dollar Index edged up 0.21% to 99.14.
Market volatility eased sharply, with the CBOE Volatility Index (VIX) falling over 6% to 14.49, reflecting reduced risk aversion.
European markets also traded firmly, with the FTSE 100 rising 0.80%, Germany’s DAX gaining 0.53%, and France’s CAC 40 outperforming with a 1.44% jump.
Overall, declining volatility and broad-based equity gains underscored improving global risk sentiment at the end of the trading week.
The S&P 500 rose 0.6% to a fresh all-time closing high, while the Dow Jones Industrial Average gained about 0.5%, also ending at a record. The Nasdaq Composite advanced 0.8%, supported by gains in technology and semiconductor stocks. All three major indices posted weekly gains.
Investor sentiment was shaped by the December nonfarm payrolls report, which showed the US economy added 50,000 jobs, below expectations of around 70,000. The unemployment rate fell to 4.4% from 4.6% in November, reinforcing expectations that the Federal Reserve will keep interest rates unchanged at its meeting later this month.
Markets also remained alert to a potential US Supreme Court ruling on the legality of President Donald Trump’s sweeping tariff policy, though no decision was issued on Friday. The court indicated its next opinion day would be January 14.
Separately, geopolitical developments drew attention after Trump said he had halted a second wave of military action in Venezuela and held discussions with global oil majors on rebuilding the country’s energy infrastructure. At home, markets assessed Trump’s directive for Freddie Mac and Fannie Mae to purchase $200 billion in mortgage-backed securities, aimed at easing mortgage rates.
